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Investments AS13

Accountancy

In case of AS-10 We give 1st priority to consider asset acquired value then asset given fair value then carrying amount. But why we give 1st priority for asset given up fair value In AS-13 If acquisition happens by exchanging assets (shares)

Divya K

CA Inter

★ 885

18-Jun-20 10:13

341

Answers (1)

Given up fair value is the exchange value against which such investment is made. In stead of cash you will get shares in exchange and if sold immediately will fetch the fair value in market. That's why we take the given up asset's fair value in case of acquisition of shares